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Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of PHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant's salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month's utility bill. 30 Garcia withdrew PHP1,050 cash from the business for personal use. Required 1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia, Capital; Jerome Garcia, Withdrawals; Revenues; and Expenses. 2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction

Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of PHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant's salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month's utility bill. 30 Garcia withdrew PHP1,050 cash from the business for personal use. Required 1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia, Capital; Jerome Garcia, Withdrawals; Revenues; and Expenses. 2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...
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Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of PHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant's salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month's utility bill. 30 Garcia withdrew PHP1,050 cash from the business for personal use. Required 1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia, Capital; Jerome Garcia, Withdrawals; Revenues; and Expenses. 2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.
Transcribed Image Text:Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of PHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant's salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month's utility bill. 30 Garcia withdrew PHP1,050 cash from the business for personal use. Required 1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia, Capital; Jerome Garcia, Withdrawals; Revenues; and Expenses. 2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.
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